Global stocks extend rally on economic hopes

Asian stocks rose Friday after U.S. shares hit a record on a bipartisan $579 billion U.S. infrastructure deal that stoked economic optimism while the dollar retreated.

Equities gained in Japan, China and Hong Kong. Australian shares weathered the imposition of virus lockdowns in parts of Sydney.

European, S&P 500 and Nasdaq 100 contracts were in the green after both American indexes reached new peaks.

Sectors seen as beneficiaries of the recovery from the pandemic, such as energy, led gains in U.S. hours, and banks rose in postmarket trading after clearing stress tests.

President Joe Biden celebrated the bipartisan plan, which is expected to move through Congress alongside a separate bill that would spend trillions more on what he called “human infrastructure.” It’s not yet assured either measure will get enough wider lawmaker support given the political splits in the U.S.

The benchmark 10-year U.S. Treasury yield hovered around 1.50%. Investors took the latest comments from Federal Reserve officials in their stride, after the central bank reassured on supportive policy while signaling that the process of removing exceptional stimulus will be gradual.

Bloomberg/Hauwa Abu